Professtion Tax Applicable in Mumbai

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2009 can u explain about my query
My payrooling Operation in Mumbai office but my employee working in Rajeshthan
In Rajeshthan there is no professtion tax
Is it applicable to dedcuted the professtion tax

Sunil

Sunil (Expert)
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14 December 2009 If you have an office in Rajasthan and your employee works in your Rajasthan Office, then you do not have to deduct Maharashtra PT provided you do business in Rajasthan and employee is connected with that business. However, for field employees connected to Maharashtra office you have to deduct Maharashtra Professional Tax.

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2009 thank you so much

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2009 Dear Sunil

There is no filed work. Our project is in Rajeshthan but we are payrolling process doing from Mumbai Office

Sunil

Sunil (Expert)
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17 December 2009 You are not clear on what your nature of project is. Therefore I will give you two scenarios of possible projects and you consider whichever is applicable to you:-

1) If you have head office in Mumbai and your project is a branch / factory in Rajasthan which eventually has its own staff and VAT Registrations etc. it would logically be having a Branch account in the ledger of the head office. If you pay salary from Mumbai which goes towards the expenses of the Rajasthan Branch (Office or Factory) then you would not be depositing Maharashtra Tax for those employees if they are continuously serving the Rajasthan Branch / factory. However if a staff living in Mumbai and having his PF and ESIC also in Mumbai going temporarily to Rajasthan you have to deduct PT of Maharashtra.

2) You could be contractor executing a project in Rajasthan and sending personnel from Mumbai. You HAVE TO deduct PT of Mumbai.